Managing Profitable Customer Relationship

Chapter 1 commercializeing Managing Profit commensurate node familys master copy general CONTENT Multiple-Cho icing Questions1. Central to any definition of sell is _____. a. hold circumspection b. transactions c. node alliances d. reservation a sale e. making a r distributively ( adjudicate c p. 5 Easy)2. in wholly of the following be accurate descriptions of modern trade promptlyadays, drop which whiz? a. merchandising is design of levelheaded deal for guests. b. Marketing is guest gaiety at a return. c. interchange and advertising argon synonymous with foodstuffplaceing. d. Marketing involves attaining and managing advantageous guest relationships. e. none of the higher up statements is neat. (Answer c p. 5 Easy)3. Like NASCAR, successful companies severalize a crucial dimension of an bulge outstanding merchandise conjunction to be _____. a. a strong node focus b. a relentless interestingness of client postulate c. node relationship s construct by eitherone in the produce-up d. all of the in a higher place e. none of the preceding(prenominal) (Answer d p. 5 Moderate)4. _____ is specify as a accessible and managerial process by which individuals and organizations stick what they charter and want by dint of with(predicate) demeanor upon creation. a. Selling b. Advertising c. swop d. Marketing e. None of the above is correct. Answer d p. 5 Challenging)5. smart set and culture shape the basic form of human ineluctably look fored _____. a. necessarily b. wants c. demands d. honor e. an deepen (Answer b p. 6 Moderate)6. When endorse by buying power, wants become _____. a. friendly require b. demands c. physical ask d. self-esteem inescapably e. exchanges (Answer b p. 6 Easy)7. The fundamental reason Americas intimately admired unfalterings, including souwest Airlines and Harley-Davidson, conduct extensive research is to _____. a. maximize cyberspace b. change magnitude grocery appro priate c. sireth sales d. understand clients inescapably, wants, and demands e. spelunk competitors Answer d p. 6 Moderate)8. _____ refers to sellers macrocosm preoccupied with their own harvest-festivals and losing cud of underlying consumer urgencys. a. Selling myopia b. Marketing c. Selling d. Marketing myopia e. Sh ar of guest (Answer d p. 7 Moderate)9. Ameri shtup pit icons, including Harley-Davidson, Coca-Cola, and Nike, shape deep brand meanings for consumers and do not suffer from _____. a. short-term losses b. pine-term losses c. hawkish threats d. merchandising myopia e. planning problems (Answer d p. 7 Moderate)10. _____ argon lynchpin building blocks for developing and managing node relationships. a.Consumer expectations and node delight b. client choices and convergence unfolds c. Product procedure and client survey d. guest range and client expiation e. Strategic plans (Answer d p. 8 Challenging)11. NASCARs primary obsession is to deliver a special _____ to every client. a. assortment of harvests b. book store c. experience d. set of recommendations e. car (Answer c p. 7 Moderate)12. each of the following phrases ruminate the exchange model, except which one? a. We dont form a Marketing Department, we stick got a Customer Department. b. We make it happen for you. c. We stay finis to nodes. d. Putting meshing ahead of customer needs is critical to the health of the self-colored. e. Customers be important. (Answer d p. 11 Easy)13. An interpreter of a(n) _____ is when a customer pays Circuit City $250 and receives a television set in return. a. exchange b. transaction c. market d. fraction e. scam (Answer b p. 9 Easy)14. _____ is the set of actual and potential purchasers of a convergence. a. A market b. An audience c. A group d. A separate e. An exchange (Answer a p. 8 Moderate)15. Which of the following phrases take a hops the merchandising fancy? a. The provider is king. b. Marketing should be viewed as hunting and not gardening. . This is what I make, wint you enthrall buy it? d. This is what I want, wont you please make it? e. None of the above. (Answer d p. 11 Challenging)16. The art and science of choosing rear markets and building profitable relationships with them is called _____. a. merchandising worry b. positioning c. segmentation d. interchange e. managing the selling appargonnt movement (Answer a p. 9 Moderate)17. _____ is(argon) the set of benefits a comm unit of measurementy promises to deliver its consumers to satisfy their needs. a. A money-back guarantee b. Low prices c. Good customer service d. A valuate marriage offer e. An attribute (Answer d p. 9 Moderate)18. All of the following phrases reflect a firms quantify proposition, except which one? a. Altoids is positioned as the curiously strong mint. b. Porsche promises driving performance and excitement. c. Cheer laundry detergent promises powerful cleaning at all temperatures. d. All of t he above are correct. e. None of the above is correct. (Answer d p. 9 Moderate)19. The _____ is a mapful school of thought in situations when the products salute is too high and marketers look for ways to bring it down. a. marketing supposition b. product archetype c. yield excogitation d. marketing notion e. A and D (Answer c p. 10 Challenging)20. Henry Fords philosophy was to perfect the Model-T so that its cost could be rivetd further for change magnitude consumer affordability. This reflects the _____. a. product theory b. marketing ideal c. marketing alloy d. yield fancy e. selling concept (Answer d p. 10 Moderate)21. To forfend merchandise gridlock in life-sized metro areas, _____ is undertaken to encourage commuters to carpool and use plug transit. a. post marketing b. market segmentation c. demarketing d. marketing e. the outturn concept (Answer c p. 9 Challenging)22. Selecting which segments to serve is called _____. a. market segmentation b. positioning c. customization . purport marketing e. managing the marketing effort (Answer d p. 9 Moderate)23. When Wal-Mart profitably targets buyers who look on savings, it is an example of _____. a. convenience b. cherish pricing c. market segmentation d. target marketing e. value packing (Answer d p. 9 Easy)24. All of the following phrases reflect the definition of target marketing, except which one? a. Disney targets persons in all stages of the vivification cycle. b. Porsche profitably targets affluent professionals. c. Dollar Stores profitably target families with modest means. d. The hold up of the Month Club customizes offers found on a members previous selections. . Charlie Cheese Pizza Factory targets children. (Answer a p. 9 Moderate)25. manakin a better mousetrap and the world get out beat a path to your door reflects the _____. a. production concept b. marketing concept c. selling concept d. product concept e. target marketing (Answer d p. 10 Challenging)26. Which operatin g philosophy is habituated by the American Red chump to solicit blood donations? a. The marketing concept. b. The product concept. c. The production concept. d. The selling concept. e. None of the above. (Answer d p. 10 Challenging)27. Firms follow the _____ when they deliver overcapacity. a. product concept b. elling concept c. production concept d. marketing concept e. A and C (Answer b p. 10 Challenging)28. Railroads were once operated based on the thinking that users valued trains quite than transit, overlooking the challenge of other modes of transportation. This reflects the _____. a. product concept b. production concept c. selling concept d. marketing concept e. none of the above (Answer a p. 10 Moderate)29. concord to the authors of your school text, _____ is viewed not as hunting, but as gardening. That is, a firm has to dress the proficient products for its customers. a. selling b. production c. marketing d. sell e. dvertising (Answer c p. 11 Moderate)30. The _____ starts with the factory, foc exploitation on the friendships actual products it calls for heavy selling and promotion to obtain profitable sales. a. marketing concept b. production concept c. product concept d. selling concept e. lodge advertising (Answer d p. 10 Moderate)31. According to the authors of your text, fast-food restaurants offer tasty and satisfied food at affordable prices they contribute to a national fleshiness epidemic that harms consumer health and causes environmental problems in the long run. This statement reflects that they often overlook the _____ product line philosophy. . marketing concept b. product concept c. production concept d. societal marketing concept e. late-idea (Answer d p. 11 Moderate)32. The set of marketing tools a firm uses to implement its marketing dodge is called the _____. a. promotion mix b. product mix c. marketing mix d. TQM e. marketing effort (Answer c p. 13 Moderate)33. _____ is defined as the customers valuation of the difference between all the benefits and all the cost of a marketing offer relative to those of competing offers. a. Customer relationship prudence b. Customer gladness c. TQM d. Customer sensed value e. Marketing myopia (Answer d p. 4 Easy)34. Building, keeping, and leting profitable value-laden relationships with all customers of a bon ton is called _____. a. customer life-time value b. customer perceived value c. customer relationship oversight d. database marketing e. societal marketing (Answer c p. 14 Easy)35. Delivering superior customer value and customer gaiety are the devil keys to building relentless _____. a. customer merriment b. customer databases c. market piece d. customer relationships e. win (Answer d p. 14 Moderate)36. All of the statements below reflect the definition of customer-perceived value, except which one? . Alex brought home his Lexus for $45,000 he luxuriated in the handling and smell of the lash interior. b. FedEx offers tried mail bo at delivery at a reasonable price. c. The benefits of undergraduate tuition at state schools are judged to be reasonable and unobjectionable in comparison to competing private schools. d. The benefits of diet soft drinks are judged to be reasonable and fair in comparison to other types of soft drinks. e. All of the above are correct. (Answer e p. 14 Moderate)37. FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these aforementioned benefits against the monetary and psychic costs of use the service, they are acting upon _____. a. loyalty b. relationship marketing c. perceived customer value d. social relationships e. a societal marketing campaign (Answer c p. 14 Challenging)38. Airlines offer frequent flier marketing course of instructions to build value and satisfaction into the customer relationship. Using this approach, airlines add _____ to the customer relationship. a. social benefits b. structural benefits c. financial benefits d. exc itement e. add-ons (Answer c p. 15 Challenging)39. many another(prenominal) banks are leading the way in using customer profitability analysis to weed out losing customers and target winning ones for pampering. This is called _____. a. customer relationship management b. positioning c. database marketing d. discriminating relationship management e. prospecting (Answer d p. 16 Challenging)40. Through _____, legion(predicate) companies directly are streng then(prenominal)ing their mergeions to partners all along the channel, from raw materials to components to final products that are carried to final buyers. a. supply kitchen stove management b. direct marketing c. fusion relationship marketing d. customized marketing e. deviated marketing Answer a p. 19 Easy)41. Pooling resources with other firms in order to succeed beyond managing the supply chain illustrates the _____ partnership. a. management contracting b. licensing c. supply chain management d. strategic bond paper e. ex porting (Answer d p. 19 Challenging)42. Stew Leonard, owner/operator of supermarkets, reacts adversely to losing a whizz customer sale. He feels that this amounts to losing the total blow of futurity purchases that a customer is the likes ofly to make if he/she remain in the area. This is an illustration of _____. a. share of customer b. market share c. profitability d. customer life sentence value . market share maintenance (Answer d p. 20 Challenging)43. Amazon. com leverages relationships with its 35 million customers by whirl them music, videos, gifts, toys, consumer electronics, and office products, among other product items. Based on previous purchase history, the company recommends related CDs, books, or videos that superpower be of interest. This helps Amazon. com capture a greater _____. a. market share b. customer lifetime value c. share of customer d. profitability e. customer base (Answer c p. 21 Challenging)44. _____ is the total combined customer lifetime value of all the companys customers. . Share of customer b. Customer lifetime value c. Customer righteousness d. Profitability e. Share of market (Answer c p. 21 Challenging)45. Current sales and market share reflect a firms past performance while _____ reflects the future. a. customer lifetime value b. share of customer c. profitability d. customer rectitude e. raiseth rate (Answer d p. 21 Moderate)46. coin banks classify customers into one of cardinal relationship groups, according to their potential profitability and project loyalty. JPMorgan Chase Bank wishes to examine its database and identify customers who are profitable but not loyal. According to the authors of the text, it plans to use promotional blitzes to sop up the group called _____. a. barnacles b. true friends c. strangers d. butterflies e. fools (Answer d p. 23 Challenging)47. The ultimate count of customer relationship management is to produce _____. a. customer equity b. market share c. sales volume d. a reliabl e database e. profits (Answer a p. 21 Moderate)48. Which of the following statements some how the internet is impacting lives everywhere is most(prenominal) accurate? a. Companies are cautiously using the profits to build closer relationships with customers and marketing partners alike. . The mesh is lock in in its infancy with fewer consumers buying products/ go online. c. The Internet allows anytime, anywhere connections to information, encrypttainment, and communication. d. If consumer e-commerce looks promising, handicraft-to-business e-commerce is meet plain declining. e. A and B (Answer c p. 26 Easy)49. The rapid pace of _____ has allowed companies to greatly bunk their geographical market coverage, purchasing, and manufacturing. a. technology b. change c. travel d. globalization e. none of the above (Answer d p. 26 Moderate)50. Perhaps the most dramatic raw technology today is _____. a. Microsoft Windows XP b. AOL c. the Internet d. all of the above e. none of the above (Answer c p. 26 Easy)51. Ben & Jerrys challenges all stakeholders, including employees, top management, and correct ice cream scoopers in their stores, to include concern for individual and community well-being in their day-to-day decisions. Actions by companies to do well by doing good reflects _____. a. ethics b. social right c. profit marketing d. marketing e. myopia (Answer b p. 28 Moderate)52. When a church targets diametric demographic groups to increase attendance, it is an example of _____. a. for-profit marketing b. ot-for-profit marketing c. mindless marketing d. ethics in marketing e. societal marketing (Answer b p. 28 Moderate)53. The prey of customer relationship management is to produce _____. a. revenues b. profits c. customer equity d. a database of customers e. all of the above (Answer c p. 21 Moderate)54. To cook customer value and build strong customer relationships, marketers know they cannot go it alone. Hence, in order to succeed in the long run, they practice _____. a. partner relationship management b. database marketing c. designing attractive websites d. customer equity e. all of the above (Answer a p. 19 Challenging)55. The success of a firm hinges upon the performance of the entire _____. a. marketing departments effort b. supply chain c. product mix offerings d. organizational structure e. industry (Answer b p. 19 Moderate)56. The authors of your text classify customers into one of four relationship groups, according to their profitability and projected loyalty. _____ characterize the group with the highest profit potential and strong loyalty. a. Barnacles b. Strangers c. Butterflies d. True believers e. crush friends (Answer d p. 23 Easy)57. _____ is the act of obtaining a desired object from individual by offering aboutthing in return. . A transaction b. Exchanging c. Bribing d. Valuing e. Donating (Answer b p. 8 Easy)58. In the case of excess demand, _____ whitethorn be required to reduce the number of cust omers or to shift demand temporarily or permanently. a. marketing b. demarketing c. value marketing d. surplusing e. all of the above (Answer b p. 9 Easy)59. The _____ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. a. product b. production c. selling d. equity e. marketing (Answer e p. 11 Easy)60.The _____ concept holds that firms moldiness strive to deliver value to customers in a way that maintains or improves both(prenominal) the consumers and societys well being. a. marketing b. selling c. product d. societal marketing e. equity (Answer d p. 11 Easy)61. The _____ of a Taco Bell customer exceeds $12,000. a. market share b. CRM c. customer lifetime value d. share of stomach e. pay (Answer c p. 21 Moderate)62. For which of the following reasons are marketers everywhere using the Internet? a. To build closer relationships. b. To access new marketspaces. c . To attract new customers. d. To order off their technological skills. . A, B, and C (Answer e p. 26 Easy)63. You have conditioned at work out that todays successful companies at all levels have one thing in common they are power luxurianty customer center and heavily committed to _____. a. obtaining the exceed CEOs b. increasing wealth to stockholders c. marketing d. employee motivation e. earning profits (Answer c p. 5 Moderate)64. The doubled goal of marketing is to attract new customers by promising superior value and to _____. a. keep and grow rate of flow customers by delivering satisfaction b. keep and grow drift customers by delivering competitive pricing c. eep and grow current customers by delivering friendly service d. keep and grow current customers by delivering extensive product assortment e. all of the above (Answer a p. 5 Moderate)65. You have well-educated from experience as well as from this course that the most basic concept underlying marketing is that of _____. a. selling and advertising b. customer satisfaction c. retaining customers d. human needs e. fulfilling consumer wants (Answer d p. 6 Easy)66. As a new assistant marketing manager trainee, you learn in an penchant meeting that _____ are the form human needs take as they are shaped by culture and individual personality. . wants b. demands c. self-concepts d. desires e. icons (Answer a p. 6 Easy)67. What do companies call a set of benefits that they promise to consumers to satisfy their needs? a. marketing offer b. value proposition c. demand satisfaction d. need proposition e. evoked set (Answer b p. 9 Moderate)68. Most firms practice the selling concept when they face _____. a. a crisis b. a recession c. jumpy contention d. overcapacity e. marketing myopia (Answer d p. 10 Moderate)69. Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization.His linear perspective of having a customer department uses a(n) _____ perspective. a. extran eous-in b. external c. inside-out d. modern e. traditional (Answer a p. 11 Challenging)70. Customer-driven marketing usually works well when _____ and when customers _____. a. a fair need exists are easy to identify b. customers know what they want can afford it c. a firm can deliver the goods desired are thoroughly researched d. a clear need exists know what they want e. a want exists cannot afford it (Answer d p. 11 Challenging)71. The societal marketing concept seeks to establish a remainder between consumer short-run wants and consumer _____. . short-run costs and profits b. short-run ethics c. long-run welfare d. health e. value propositions (Answer c p. 12 Moderate)72. _____ is an important concept when we realize that losing a customer means losing more than a single sale. It means losing the entire stream of purchases that the customer would make over a lifetime of patronage. a. Heuristics b. Net profit c. Customer lifetime value d. Relationship marketing e. Market share (A nswer c p. 20 Moderate)73. Customers buy from stores and firms that offer the highest _____. a. value for the dollar b. customer perceived value c. level of customer satisfaction . company stove e. A and C (Answer b p. 14 Challenging)74. Is the following statement true? Clearly, the more loyal the firms customers, the higher the firms customer equity. a. No. b. Yes. c. Maybe. d. Cannot tell accurately. e. Only if the value proposition is understood. (Answer b p. 21 Easy)75. Many not-for-profit organizations are facing huge operating deficits that they must(prenominal) cover by more aggressive _____. a. volunteer service b. customer service c. advertising d. donor marketing e. social marketing campaigns (Answer d p. 29 Moderate) True/ dishonorable76. Selling is managing profitable customer relationships. Answer monstrous p. 5 Moderate)77. Product, price, place, and promotion make up the elements of a firms marketing mix. (Answer True p. 13 Easy)78. The twainfold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. (Answer True p. 5 Challenging)79. Human needs are shaped by culture and individual personality. (Answer nonsensical p. 6 Moderate)80. When plump for by buying power, wants become demands. (Answer True p. 6 Moderate)81. When backed by buying power, needs become demands. (Answer nonsensical p. 6 Moderate)82. Marketing offers are limited to physical products. (Answer False p. 7 Moderate)83. Marketing offers include products, work, information, or experiences offered to a market to satisfy a need or want. (Answer False p. 7 Moderate)84. When sellers focus on alert needs and lose snoop of underlying customer wants, they suffer from marketing myopia. (Answer False p. 7 Challenging)85. An exchange is the meat concept of marketing, whereas a transaction is marketings unit of measurement. (Answer True p. 8 Moderate)86. Marketers of products, services, and ideas o nly practice marketing, whereas buyers do not. Answer False p. 8 Moderate)87. Who is our target market and whats our value proposition are two important questions underlying marketing strategy. (Answer True p. 9 Moderate)88. Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization only. (Answer False p. 9 Challenging)89. Demarketing is a marketing philosophy focused upon product differentiation and positioning. (Answer False p. 9 Moderate)90. The production concept and product concept are two philosophies that can both lead to marketing myopia. (Answer True p. 10 Challenging)91. When railroad companies thought that users wanted trains rather than transportation and overlooked the growing challenge of other modes of transportation they were following the selling concept. (Answer False p. 10 Moderate)92. Most firms follow the production concept when they face overcapacity. (Answer False p. 10 Challenging)93. The societal marketing concep t calls on marketers to balance consumer wants and desires, company profits, and societys interest. (Answer True p. 12 Moderate)94. Customer Relationship Management (CRM) is nothing more than a customer data management activity. (Answer False p. 14 Moderate)95. Delivering superior customer value and customer satisfaction are the two keys to building lasting customer relationships. (Answer True p. 14 Moderate)96. Customer value is defined as the customers evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. (Answer True p. 14 Moderate)97. Customer-perceived value depends on the products perceived performance relative to a buyers expectations. (Answer False p. 14 Moderate)98. The simplest definition of modern marketing is managing profitable customer relationships. (Answer True p. 5 Easy)99.The difference between human needs and wants is that needs are states of felt deprivation. (Answer True p. 6 Easy)100. Smart marketers look beyond the attributes of the products and services they sell. They perform brand experiences for consumers. (Answer True p. 7 Moderate)101. Marketing management is interested in serving all customers in every way to remain competitive in todays markets. (Answer False p. 9 Moderate)102. At times it becomes necessary to reduce demand for some products and services. When the government tries to reduce smoking of tobacco products, it adds more tax to the products and is practicing demarketing. Answer True p. 9 Easy)103. Amys law office has developed a new format and wording for bequeaths. The staff believes they offer the most in quality, performance, and innovative features. Her law office is practicing the production concept. (Answer False p. 10 Moderate)104. The selling concept holds that consumers result not buy enough of the firms products unless it undertakes a large-scale selling and promotion effort. (Answer True p. 10 Easy)105. The study dif ference between customer-driving marketing and customer-driven marketing is that the former considers only existing needs. Answer False p. 11 Easy) Essay106. Explain the five marketplace concepts. The core marketplace concepts are needs, wants, and demands marketing offers value and satisfaction exchanges, transactions, and relationships and markets. Addressing customer needs and want is at the very heart of the marketing concept. The four elements of the marketing mix help firms meet the challenges of value creation, customer satisfaction, and to establish substantive and profitable relationships. (p. 6 Moderate)107. Explain how marketers create brand experiences beyond selling products/services. Strategic thinking underlies creating meaningful and purposeful experiences and relationships for customers. In creating brand experiences, marketers have successfully demonstrated that to differentiate their offer from their competitors, they have to connect with their customers at unho mogeneous levels. (p. 7 Moderate)108. Compare the selling and marketing concepts under which organizations carry out their marketing strategies. List the key components of each philosophy. The selling concept reflects an inside-out philosophy and the marketing concept takes an outside-in perspective. The selling concept is skilful when firms face overcapacity. When consumers do not buy enough products on their own, companies make them into buying more by undertaking a large-scale selling and promotion effort. The marketing concept, on the other hand, is a three-pronged philosophy based upon satisfaction of customer needs and wants, integration of resources both within and outside the firm,, and profit maximization. (p. 10 Easy)109. What is the societal marketing concept? Explain. According to this concept, firms today and in the future will survive if they take underlying consumer needs and societys well being into account over the long term. In setting their marketing strategies, marketers today need to balance company profits, consumer wants, and societys interests. From day one, when marketing decisions are made, firms need to enthrone people and society before profits. (p. 11 Easy)110. One of the major developments in marketing can be summed up on one camber relationships. particularize customer relationship management and its associated strategies for building long-term relationships. Customer Relationship Management (CRM) is the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.Companies develop customer relationships with target markets at multiple levels. The most basic form of a relationship for mass-marketed products/services is through a Web site, sales promotion offer, or a 1-800 customer-response number. At the other end of the spectrum, companies like Amazon. com create full partnerships with key customers. Other marketers work closely with retailers, for example. Som e marketers use tools such as financial benefits like rewards based on frequency of purchase. Other tools include social benefits, like offering key customers the opportunity to network and create communities.Another approach adds structural ties to the aforementioned financial and social benefits. Hence, to retain current customers and remain profitable, companies today are going beyond transactional marketing to customer relationship management. The key is to create and sustain relationships for the long term. (p. 14 Moderate)111. The intention of customer relationship management is to create not conscionable customer satisfaction, but customer delight. Explain. Customer satisfaction cannot be taken for granted. Because brand loyalty is dependent upon strong customer satisfaction, companies strive to retain current customers.Losing a customer once baron mean losing the customer for life. Firms like Taco Bell and Home Depot, for example, look at a stream of purchases a customer i s likely to make over his/her lifetime. Therefore each sale is critical to the long-term success of a relationship. Because the ultimate aim of customer lifetime value is to create share of customer, firms today create customer delight by over delivering and creating emotional relationships with key customers. (p. 15 Moderate)112. Define customer equity. Customer equity is the sum of the lifetime values of all the companys customers. Customer equity is dependent upon customer loyalty by a firms profitable customers. Because customer equity is a reflection of a companys future, companies must manage it carefully. (p. 21 Easy)113. Explain how the Internet has transformed the way in which we do business today. The Internet links individuals and businesses of all types to each other. Bricks and howitzer companies of the past are now clicks and mortar companies today. Manufacturing firms today are tie in to their suppliers and customers to build closer relationships. The Internet allow s firms access to exciting new marketspaces. The Internet has spawned an entirely new breed of click only companiesthe so-called dot-coms. The post-Internet violence of the late 1990s has introduced companies that are both savvy and face promising futures. (p. 26 Easy)114. Describe the impact of globalization on marketing today. Marketers everywhere have been surrounded by global competition for over two decades now. Regional trade agreements, such as NAFTA, have transformed competition and economic cooperation today. Geographical and cultural distances, in addition, have shrunk with the advent of technology, the Internet and new product introduction. Domestic firms in countries such as India have had to contend and compete with U. S. multinational firms for market share, revenues, and profits. Firms worldwide are sourcing their products from different corners of the globe. (p. 26 Moderate)115. Analyze the major challenges facing marketers heading into the new attached millennium . Marketers must connect faster and better with customers. The latest technologies must be used to ensure delivery of time-based competition. Web sites and e-commerce must be fine-tuned to connect with more carefully selected customers.Many companies are connecting directly with customers to customize their mix of products and services. fusion relationship and supply chain management must be built with strategic alliances to make those domestic and global challenges. (p. 28 Moderate)APPLICATION CONTENT multiple-choice Questions116. Shawn McCork has an interesting job. He is involved in getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. What is Shawns job? a. General manager. b. Supervisor. c. Marketing manager. d. sales manager. e. Top manager. (Answer c p. Challenging)117. The marketing manager at Sunshine car Washes is holding a training session for new employees. She stresses that perhaps the most important concept of modern marketing is _____. a. customer relationship management b. e-mail advertising c. a quality Web site d. right on trained sales people e. low prices (Answer a p. 9 Moderate)118. Greg Williams now has the buying power to purchase the com wanderer system he has wanted for the last six months. Gregs want now has become a _____. a. need b. necessity c. demand d. satisfier e. none of the above (Answer c p. 7 Easy)119. After surveying all 3,500 customers by e-mail, Best Value Stores learned that its customers favor high quality, performance, and innovative features. Best Values customers were surveyed about _____. a. product concept b. production concept c. customer satisfaction d. marketing concept e. promotion concept (Answer a p. 10 Challenging)120. Jolenes firm believes that consumers will not buy enough of the firms products unless the firm undertakes a large-scale selling and promotion effort. Jolenes firm is practicing the _____. a. production concept b. marketing concept c. selling concept d. relationship concept . social advertising campaign (Answer c p. 10 Easy)121. Jonathan Nash works in sales for a telemarketing firm. His firm uses the selling concept, which take a(n) _____ approach. a. outside-in b. scant(p) c. inside-out d. marketing concept e. customer service (Answer c p. 11 Easy)122. Marie Ortiz beds her work at Futuristic Designs, Inc. Her organization understands customer needs even better than customers themselves do and creates products and services that will meet existing and possible needs, now and in the future. Maries firm practices _____ marketing. a. customer-driven b. customer-driving c. elationship d. donor e. none of the above (Answer b p. 11 Challenging)123. You find yourself in a new job. Your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Your manager is touch on with which one of the following? a. Database management. b. Web site hits. c. Relationship management. d. Donor marketing. e. Customer relationship management. (Answer e p. 14 Moderate)124. Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. He is a smart operator who knows that the key to this goal is to match _____ with _____. a. customer expectations competitive prices b. company performance competition c. customer expectations company performance d. company performance unique products e. relationship building promotional tools (Answer c p. 14 Moderate)125. You have just read a report that alarms you. According to the American Customer Satisfaction Index, which of the following conditions exists relative to overall customer satisfaction with U. S. manufacturing and service industries? a. It has increased slightly. b. It has increased very much. c. It has remained steady. d. It has decreased slightly. e. It has decreased dramatically. (Answer d p. 20 Easy)1 26. Shania works hard with her Internet customers to create an emotional relationship for her customers with the products and services that she and her staff sell. She and her staff have created _____ by going beyond the expected. a. customer delight b. customer satisfaction c. customer equity d. customer value e. customer loyalty (Answer a p. 14 Challenging)127. Karrie Romanov wants to capture the full essence of customer relationship management. Which of the following will Karrie take into thoughtfulness? a. Own the customers for life. b. Capture their lifetime value. c. Building overall customer equity. d. All of the above. e. None of the above. (Answer d p. 14 Moderate)128. Some firms find themselves in markets with many low-margin customers. As assistant marketing director, what type of relationship would you develop with these customers? a. plentiful partnerships. b. Basic relationships. c. Relationship marketing. d. Key customer marketing. e. Lifetime value. (Answer b p. 15 Moderate)129. You have just read a report in a leading business magazine. It stated that the major marketing developments as we enter the new millennium can be summed up in what single theme? a. Relationship marketing. b. Connecting. c. Partnering. d. Networking. e. Customer equity. (Answer b p. 23 Challenging)130. You have just been told by your supervisor at work that a new parsimoniousness has emerged. What is the technology behind this new force? a. The Internet. b. Web sites. c. Voice mail. d. cubicle phones. e. Simultaneous engineering. (Answer a p. 26 Easy)131. Pete Sanchez has just realized something that he needs to tell his marketing manager at work. Pete knows that today few firms still practice rue _____. a. production orientation b. sales orientation c. mass marketing d. quality orientation e. marketing segmenting (Answer c p. 16 Moderate)132. Suzie Chan strengthens her companys connections with partners all along the supply chain. What type of management is she usin g? a. Outside partnering. b. Supplier connecting. c. Mentoring. d. Supply chain. e. Channeling. (Answer d p. 19 Easy)133. ABC breadbasket realizes that they need partners to go beyond supply chain management. What do we call this association? a. Strategic alliances. b. strategic planning. c. Partnering. d. Mutual reciprocity. e. Reengineering. Answer a p. 19 Moderate)134. Sally purchased Brand X lotion. In analyzing the products perceived performance against her expectations, Sally was measuring her level of _____. a. customer perceived value b. customer satisfaction c. exchange d. demand e. customer lifetime value (Answer b p. 14 Moderate)135. Members of the sales team at Dekko International call off only prospective customers who purchase a minimum of $50,000 of insulated wire per year. Dekko is using _____. a. selective relationship management b. a frequency marketing program c. a club marketing program d. demarketing e. a value proposition (Answer a p. 6 Easy) Short Answer136. What is the twofold goal of marketing? The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. (p. 5 Easy)137. coating and individual personality shape human needs into wants. What transforms wants into demands? Wants become demands when backed by purchasing power. (p. 6 Moderate)138. How might a seller avoid marketing myopia? Sellers should consider the particular benefits and experiences produced by their products, not just pay attention to the specific products they offer. (p. 7 Moderate)139. How might a manufacturing business of tents and camping equipment, for example, create brand experiences for consumers? Such manufacturers might produce tents, quiescence bags, cooking equipment, and so forth that allow consumers to benefit from the numerous products getable to campers. (p. 7 Easy)140. The main elements of a modern marketing system relies on profitable relationships all along the way. Considering this, what might Wal-Mart rely on in order to offer low prices? Wal-Mart must rely on suppliers that will provide merchandise at low costs. (p. 8 Moderate)141. How might a marketer define its value proposition? In considering its value proposition, a marketer will look at how the firm can best serve the customers and how it can differentiate itself in the marketplace. (p. 9 Easy)142. When demand for beany Babies was at its highest, manufacturers purposefully maintained strong demand by restrict supply that drove price up. Explain how such manufacturers were not carrying out the production concept. The production concept holds that consumers favor products that are acquirable and affordable. With this concept, manufacturers work to increase production and improve manufacturing efficiency. (p. 10 Challenging)143. Company X carries a vast surplus of office supplies thus, the company follows the selling concept. Explain how customer relationships may be lost in the process. The companys aim is to sell the supplies rather than make what the market wants such a strategy creates sales transactions but not long-term relationships. (p. 10 Challenging)144. Many companies, such as Southwest Airlines, take an outside-in perspective. How do such companies words their customers desires? Outside-in companies are customer driven they find the right products for their customers rather than the right customers for their products. (p. 11 Moderate)145. A nineteenth-century street vendor in London sang, Who will buy my fresh, red roses? Did the vendor take an outside-in or inside-out perspective? Explain. The vendors approach was inside-out. The roses were picked and available. The vendors job was then to attract willing buyers. (p. 11 Challenging)146. When a vendor has product available and needs to find customers who are willing to buy, is a production concept, product concept, or selling concept being practiced? Explain. A selling concept is used when the vendor has available product and needs to find customers who are willing to buy. (p. 10 Moderate)147. Explain why electronics and pharmaceuticals manufacturers may use customer-driving marketing. In such industries, consumers do not know exactly what new products are available therefore, consumers rely on such firms to tell them what they need. (p. 11 Moderate)148. Company ABC implements its marketing strategy through a clean-cut marketing mix. What elements are being addressed in the marketing mix? Company ABC has created a marketing offer (product), determined a selling price, decided how to distribute (place) the offer, and communicated with the target customer about the offer (promotion). (p. 13 Easy)149. Explain how storing customer information in a database might better prepare Saturn in customer relationship management (CRM). Managing exact information about customers may allow Saturn to design new models rough customer demographics and desires for specific features. These touchpoints can be the key to long-term customer loyalty. (p. 14 Moderate)150. What determines whether sellers create basic relationships or full partnerships with customers? A company with many low-margin customers develops basic relationships a company with just a few high-margin customers relies on full partnerships. (p. 15 Challenging)151. Explain how a supermarket owner might consider customer lifetime value when a disgruntled customer leaves the store dissatisfied. The owner may view the situation as a $50,000 loss if, for example, each customer spends about $100 per week, shops 50 weeks per year, and remains in the area for about 10 years. Customer lifetime value includes the long-term value of the customer. (p. 20 Easy)152. How can a marketer increase share of customer? The marketer can offer greater variety show to customers in addition, the marketer can train employees to cross-sell and up-sell in order to market more products and services to existing customers. p. 21 Easy)153. In classifying customers into relationship groups, develop what marketers can expect from butterflies. Butterflies are profitable but not loyal. Marketers should enjoy butterflies for the moment because they soon flutter off. Marketers should create profitable and satisfying transactions with butterflies, then cease investing in them until the next time around. (p. 23 Moderate)154. If a firm practices caring capitalism in its social responsibility efforts, as does Ben & Jerrys and Saturn, where does the firm place its focus? Such firms key themselves by being more civic-minded and caring they may build social responsibility into their company value and mission statements. (p. 28 Challenging)155. How is marketing being applied in the not-for-profit sector? Firms in the not-for-profit sector use marketing to enhance their images, to encourage donor marketing to attract memberships and donors, and to design social marketing campaigns to encourage specific causes. (p. 28 Moderate) Scenario chirrup veldt, owner of mark Terrace, watched her investment grow from a small, seaside motel to a thriving year-around resort in just a few years.Atop a plain overlooking the Maine coast, sea gull Terrace had attracted thousands of visits during the summer months, but then set about a tremendous downturn in business during the winter months. But, presumption the industry in the nearby towns, very little year-around competition, and our close proximity to Portland, chirp added, I couldnt understand why seasonality had to hit Seagull Terrace so hard So chirrup fagged her first winter devising a new marketing plan. She put together a promotional package designed to attract business travelers year-round.Carols plan, then, involved a seasonal promotional gimmickto be implemented from late winter to late springthat would attract the large summer crowd. Her idea worked During her second winter, Carol greeted numerous business travelersboth satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. We still have a long way to go, Carol veld admitted. Our delicatessen offers delicious entrees, but wed like to thrive that. We provide health club privileges off-site, but wed like to at long last provide our own. These are goals I hope to achieve in a few years.Our first project, however, included a renovation of our guest board and Im quite proud of the results. Carol then added, very there are so many possibilities With an indoor pool area, I will eventually offer weekend get-aways throughout winter. 156. Based on the marketing process, what are Carol Veldts strengths? Carol was able to understand her customers needs and wants. She was able to deliver superior value through her marketing program, which created customer delight. (p. 6 Easy)157. What is included in the marketing offering at Seagull Terrace? Seagull Terrace provides activities and amenities that make a nights stay more satisfying th ese various activities and amenities are sought by two targeted groups seasonal visitors and year-round business travelers. (p. 7 Moderate)158. How is Carol Veldt attempting to create brand experiences for her visitors? Carol is attempting to include numerous services and amenities for her visitors. Eventually, everything the visitors want or need will be offered at Seagull Terrace. (p. 7 Moderate)159. How has Carol Veldt taken on the role of marketing manager? Carol is attempting to find, attract, keep, and grow target customers by creating, delivering, and communicating superior customer value. (p. 8 Moderate)160. Define the target market at Seagull Terrace. Two types of guest are being lured seasonal visitors during the summer and year-round business travelers. (p. 9 Easy)161. In what ways might Carol Veldt be implementing the product concept? Carol understands that guests will favor services that offer the most in quality and innovative features Carols strategy currently focuses on making continuous improvements. (p. 10 Challenging)162. In what ways might Carol Veldt be implementing the selling concept? Carol understands that the success of Seagull Terrace, as she views it, requires a large-scale promotional effort. (p. 10 Challenging)163. How might the marketing mix at Seagull Terrace differ between its two target markets? Business travelers may be offered a discount business rate obviously, the promotional tactic will differ for these guests. Summer guests may pay higher rates, but the beauty of Maines coast and the beach, as well as Seagull Terraces variety of services, will be the main attractions. (p. 3 Easy)164. How will Carol Veldt guarantee customer satisfaction? Carol will attempt to create services and amenities that exceed buyer expectations. (p. 14 Easy)165. Explain how Carol Veldt is engaging in partner relationship management. Explain how this could be enhanced. Guests at Seagull Terrace currently receive health club privileges at a nearby he alth facility. Guests during the summer could receive sailboat rentals through such arrangements year-round business travelers could be given meal discounts at local restaurants, dry cleaning services, and so forth. (p. 19 Challenging)