Chapter 1 Marketing: Creating and Capturing Customer Value

1) All of the following are accurate descriptions of modern marketing, EXCEPT which one?
A) Marketing is the creation of value for customers.
B) Marketing is managing profitable customer relationships.
C) Selling and advertising are synonymous with marketing.
D) Marketing involves satisfying customers' needs.
E) Marketing is used by for-profit and not-for-profit organizations.

Answer: C

2) Which steps of the five-step marketing process are about understanding customers, creating
customer value, and building strong customer relationships?
A) the first two only
B) the first three only
C) the first four only
D) the last three only
E) the last four only

Answer: C

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

A) Needs
B) Wants
C) Demands
D) Values
E) Exchanges

Answer: B

4) When backed by buying power, wants become ________.

A) social needs
B) demands
C) physical needs
D) self-esteem needs
E) exchanges

Answer: B

5) What do companies call a set of benefits that they promise to consumers to satisfy their needs?
A) market offering
B) value proposition
C) demand satisfaction
D) need proposition
E) evoked set

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Answer: A

6) ________ is the act of obtaining a desired object from someone by offering something in
return.
A) A value proposition
B) Exchange
C) Bribery
D) Value creation
E) Donation

Answer: B

7) A(n) ________ is the set of actual and potential buyers of a product.

A) market
B) audience
C) group
D) segment
E) exchange

Answer: A

8) The art and science of choosing target markets and building profitable relationships with them
is called ________.
A) marketing management
B) positioning
C) segmentation
D) selling
E) differentiation

Answer: A

9) Selecting which segments of a population of customers to serve is called ________.

A) market segmentation
B) positioning
C) customization
D) target marketing
E) managing the marketing effort

Answer: D

10) Which of the following is the set of benefits a company promises to deliver the customer to
satisfy their needs?
A) a money-back guarantee
B) low pricing
C) good customer service
D) a value proposition

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E) an attribute

Answer: D

Chapter 2 Company and Marketing Strategy:

Partnering to Build Customer Relationships

1) When a firm develops and maintains a strategic fit between its goals and capabilities, it is
performing ________.
A) mission planning
B) values planning
C) strategic planning
D) business-portfolio planning
E) operations planning

Answer: C

2) Which of the following is the first step in strategic planning?

A) set objectives and goals
B) develop the business portfolio
C) define the company mission
D) plan marketing strategies
E) identify threats and weaknesses

Answer: C

3) Which of the following is NOT a step in the strategic planning process?

A) defining the company mission
B) setting company objectives and goals
C) designing the business portfolio
D) planning marketing and other functional strategies
E) evaluating all members of the value chain

Answer: E

4) Which of the following provides an answer to these questions: What is our business? Who are
our customers? What do our customers value? What should our business be?
A) objectives and goals
B) a mission statement
C) a business portfolio
D) marketing and functional strategies
E) operational strategies

Answer: B

5) ________ should be market oriented and defined in terms of ________.

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A) Annual plans; product needs
B) Strategic plans; company needs
C) Long-range plans; company needs
D) Mission statements; customers' needs
E) Objectives; competitors' threats

Answer: D

6) A company's mission statement serves as a statement of ________.

A) fact
B) values
C) purpose
D) financial goals
E) employee commitment

Answer: C

7) Which of the following is NOT a market-oriented business definition?

A) "to make the Internet buying experience fast, easy, and enjoyable"
B) "to sell tools and home repair and improvement items"
C) "to deliver low prices every day"
D) "to be the guardian of our customers' financial dreams"
E) "to bring aspiration and innovation to every athlete in the world"

Answer: B

8) The collection of businesses and products that make up a company is called its ________.
A) strategic business unit
B) mission statement
C) strategic plan
D) business portfolio
E) operational factor

Answer: D

9) Which of the following can be a company division, a product line within a division, or
sometimes a single product or brand?
A) a market
B) the BCG
C) an SBU
D) a PLC
E) a value delivery network

Answer: C

10) After management has identified the key businesses making up its company, what is the next

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step in portfolio analysis?
A) identifying businesses in which to invest
B) assessing the attractiveness of its SBUs
C) deciding whether to harvest any businesses
D) completing short-range planning
E) identifying SBUs

Answer: B

11) In the Boston Consulting Group approach, ________ provides a measure of market
attractiveness.
A) relative market share
B) market development
C) market penetration
D) market growth rate
E) market segmentation

Answer: D

12) In the Boston Consulting Group approach, ________ serves as a measure of company
strength in the market.
A) relative market share
B) market development
C) market diversification
D) market growth rate
E) market segmentation

Answer: A

13) The BCG growth-share matrix classifies four types off SBUs. They are ________ ,
________ , ________ , and ________.
A) product; price; promotion; placement
B) sales; market share; price; promotion
C) stars; cash cows; question marks; dogs
D) planning; implementing; leading; controlling
E) market penetration; market development; product development; diversification

Answer: C

14) In the BCG approach, ________ are high-share, high-growth businesses or products. They
need heavy investment to finance rapid growth. When their growth slows down, they turn into
________.
A) cash cows; stars
B) question marks; dogs
C) stars; question marks
D) stars; cash cows

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E) dogs; cash cows

Answer: D

15) ________ are low-growth, high share businesses or products. They generate a lot of cash that
the firm uses to pay its bills and support other SBUs that need investment.
A) Stars
B) Cash cows
C) Question marks
D) Dogs
E) Cats

Answer: B

16) In the BCG matrix, income from ________ can be used to help finance the company's
question marks and stars.
A) dogs
B) cash cows
C) SBU revenues
D) overseas operations
E) low-share businesses

Answer: B

17) Which of the following is a useful tool for identifying growth opportunities?
A) the BCG matrix
B) the business portfolio
C) the product/market expansion grid
D) the value chain
E) the value delivery network

Answer: C

18) Making more sales to current customers without changing a firm's products is ________.
A) market attractiveness
B) market penetration
C) market development
D) product development
E) diversification

Answer: B

19) A common practice among marketers is to identify and develop new markets for their
existing products. This practice is called ________.
A) market development
B) product development

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C) market penetration
D) market skimming
E) dual adaptation

Answer: A

20) Starbucks Coffee has recently begun selling and playing compilation CDs and is supporting
its own XM satellite radio station. This represents which strategy for growth?
A) product development
B) market development
C) market penetration
D) diversification
E) partner development

Answer: D

21) Which of the following entails reducing the business portfolio by eliminating products that
no longer fit the company's overall strategy?
A) market segmentation
B) the BCG approach
C) product line extension
D) downsizing
E) market redesign

Answer: D
Chapter 4 Managing Marketing Information to Gain Customer Insights

1) A marketing information system (MIS) consists of people and procedures to assess

information needs, ________, and help decision makers analyze and use the information.
A) experiment to develop information
B) test market the information
C) develop the needed information
D) critique the needed information
E) question the needed information

Answer: C

2) Four common sources of internal data include the accounting department, operations, the sales
force, and the ________.
A) owners
B) stockholders
C) marketing department
D) competition
E) Web

Answer: C

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3) Marketing information from which type of database usually can be accessed more quickly and
cheaply than other information sources?
A) external
B) LexisNexis
C) Dun & Bradstreet's
D) internal
E) Hoover's

Answer: D

4) ________ is the systematic collection and analysis of publicly available information about
consumers, competitors, and developments in the marketing environment.
A) Marketing data
B) Marketing intelligence
C) Sales management
D) Customer intelligence
E) Competitive intelligence

Answer: B

5) Which of the following statements regarding marketing intelligence is true?

A) The advantage of using competitive intelligence is negligible.
B) All marketing intelligence is available for free.
C) Marketing intelligence relies upon privately held information.
D) Marketing intelligence relies upon publicly available information.
E) Marketing intelligence gathering is more focused on gaining insights into consumer activities
than competitors' activities.

Answer: D

6) Which of the following is NOT considered a source of marketing intelligence?

A) suppliers
B) resellers
C) key customers
D) causal research
E) activities of competitors

Answer: D

7) Which of the following is NOT a potential source for marketing intelligence?

A) looking through competitors' garbage
B) purchasing competitors' products
C) monitoring competitors' sales
D) collecting primary data
E) talking with purchasing agents

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Answer: D

8) ________ is the systematic design, collection, analysis, and reporting of data relevant to a
specific marketing situation facing an organization.
A) The marketing information system
B) Marketing intelligence
C) Marketing research
D) Competitive intelligence
E) Causal research

Answer: C

9) What is the first step in the marketing research process?

A) developing a marketing information system
B) defining the problem and research objectives
C) developing the research plan for collecting information
D) implementing the research plan
E) hiring an outside research specialist

Answer: B

10) Which step in the four-step marketing research process has been left out of the following list:
defining the problems and research objectives, implementing the research plan, and interpreting
and reporting the findings?
A) developing the research budget
B) choosing the research agency
C) choosing the research method
D) developing the research plan
E) comparing and contrasting primary and secondary data

Answer: D

11) Secondary data consists of information ________.

A) that already exists somewhere but is outdated
B) that does not currently exist in an organized form
C) that already exists but was collected for a different purpose
D) used by competitors
E) that researchers can only obtain through surveys and observation

Answer: C

12) Information collected from online databases is an example of ________ data.

A) primary
B) secondary
C) observational

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D) experimental
E) ethnographic

Answer: B

13) Which form of data below can usually be obtained more quickly and at a lower cost than the
others?
A) primary
B) survey research
C) experimental research
D) secondary
E) observational research

Answer: D

14) Secondary data are ________.

A) collected mostly via surveys
B) expensive to obtain
C) never purchased from outside suppliers
D) always necessary to support primary data
E) not always very usable

Answer: E

15) Survey research is least likely to be conducted through which of the following?
A) the Web
B) the mail
C) the telephone
D) in person
E) observation

Answer: E

16) Experimental research is best suited for gathering ________ information.

A) exploratory
B) causal
C) interactive
D) preferential
E) descriptive

Answer: B

17) Which of the following is true of ethnographic research?

A) It is conducted within traditional focus groups.
B) It provides greater insight into customer behavior than interviews do.
C) It provides researchers with secondary data.

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D) It is most popular in the service sector.
E) It is a research option when observation is not possible.

Answer: B

18) Marketing researchers usually draw conclusions about large groups of consumers by
studying a small ________ of the total consumer population.
A) group
B) target group
C) population
D) sample
E) audience

Answer: D

19) You generally need to ask three questions when developing a sampling plan. Which of the
questions below is one of these three?
A) Who should be left out of the sample (sampling exclusion)?
B) How should we contact the sample (sampling approach)?
C) Why should respondents by selected (sampling justification)?
D) How should participants be chosen (sampling procedure)?
E) none of the above

Answer: D

20) What are the two main types of research instruments used to collect primary data?
A) surveys and samples
B) questionnaires and mechanical devices
C) focus groups and online databases
D) online panels and experiments
E) personal interviews and online marketing research

Answer: B

21) The most common research instrument used is the ________.

A) mechanical device
B) live interviewer
C) questionnaire
D) focus group
E) people meter

Answer: C

Chapter 5 Consumer Markets and Consumer Buyer Behavior

1) ________ is never simple, yet understanding it is the essential task of marketing management.

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A) Brand personality
B) Consumption pioneering
C) Early adoption
D) Consumer buying behavior
E) Understanding the difference between primary and secondary data

Answer: D

2) Economic, technological, and cultural forces are all ________ in the stimulus-response model
of buyer behavior.
A) buyer responses
B) stimuli
C) components of the buyer's decision process
D) buyer characteristics
E) buying attitudes

Answer: B

3) Most large companies research ________ buying decisions to find out what they buy, where
they buy, how and how much they buy, when they buy, and why they buy.
A) market
B) permanent
C) consumer
D) social
E) group

Answer: C

4) Marketing stimuli consist of the four Ps. Which is NOT one of these?
A) product
B) politics
C) price
D) promotion
E) place

Answer: B

5) The marketer wants to understand how the stimuli are changed into responses inside the
consumer's ________, which has two parts. First, the buyer's characteristics influence how he or
she perceives and reacts to the stimuli. Second, the buyer's decision process itself affects the
buyer's behavior.
A) culture
B) black box
C) belief
D) lifestyle
E) social class

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Answer: B

6) In the model of buyer behavior, which of the following is NOT a major type of force or event
in the buyer's environment?
A) economic
B) technological
C) political
D) channel
E) cultural

Answer: D

7) ________ is(are) the most basic cause of a person's wants and behavior.
A) Culture
B) Brand personality
C) Cognitive dissonance
D) Societal factors
E) Selective perception

Answer: A

8) Each culture contains smaller ________, or groups of people with shared value systems based
on common life experiences and situations.
A) alternative evaluations
B) cognitive dissonances
C) subcultures
D) motives
E) attitudes

Answer: C

9) ________ are society's relatively permanent and ordered divisions whose members share
similar values, interests, and behaviors.
A) Social classes
B) Cultures
C) Reference groups
D) Attitudes
E) Lifestyles

Answer: A

10) What is one way that social class is NOT measured?

A) occupation
B) education
C) income

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D) number of children in the family
E) wealth

Answer: D

11) ________ are groups to which an individual wishes to belong, as when a teenaged basketball
player hopes to play someday for the Los Angeles Lakers.
A) Membership groups
B) Aspirational groups
C) Leading adopter groups
D) Leisure groups
E) Social class groups

Answer: B

12) ________ are people within a reference group who, because of special skills, knowledge,
personality, or other characteristics, exert influence on others.
A) Opinion leaders
B) Habitual buyers
C) Social networkers
D) Stealth marketers
E) Buzz marketers

Answer: A

13) Opinion leaders are sometimes referred to as ________.

A) the influentials
B) the upper uppers
C) the middle class
D) buzz marketers
E) networkers

Answer: A

14) The ________ is the most important consumer buying organization in society; the roles and
influences of different members have been researched extensively.
A) family
B) social class
C) membership group
D) subculture
E) reference group

Answer: A

15) When consumers are highly involved with the purchase of an expensive product and they
perceive significant differences among brands, they most likely will undertake ________.

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A) habitual buying behavior
B) complex buying behavior
C) reflective buying behavior
D) habitual buying behavior
E) variety-seeking buying behavior

Answer: B

16) Which of the following typically occurs with habitual buying behavior?
A) There is high consumer involvement.
B) There is strong brand loyalty.
C) Consumers search extensively for information.
D) Ad repetition creates brand conviction.
E) none of the above

Answer: E

17) When customers have a low involvement in a purchase but perceive significant brand
differences, they will most likely engage in ________.
A) complex buying behavior
B) dissonance-reducing buying behavior
C) habitual buying behavior
D) variety-seeking buying behavior
E) brand conviction buying behavior

Answer: D

18) The buyer decision process consists of five stages. Which of the following is NOT one of
these stages?
A) need recognition
B) information search
C) variety-seeking buying behavior
D) purchase decision
E) postpurchase behavior

Answer: C

19) The buying process starts with ________, in which the buyer recognizes a problem.
A) need recognition
B) information search
C) product awareness
D) product interest
E) alternative evaluation

Answer: A

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20) If the consumer's drive is strong and a satisfying product is near at hand, the consumer is
likely to buy it then. If not, the consumer may store the need in memory or undertake a(n)
________.
A) brand personality
B) alternative evaluation
C) postpurchase behavior
D) information search
E) product adoption

Answer: D

21) After the purchase of a product, consumers will be either satisfied or dissatisfied and engage
in ________.
A) need recognition
B) alternative evaluation
C) postpurchase behavior
D) product expectations
E) information searches

Answer: C

22) The relationship between the consumer's expectations and the product's ________
determines whether the buyer is satisfied or dissatisfied with a purchase.
A) perceived performance
B) brand personality
C) recognition
D) consumer market
E) service quality

Answer: A

23) Consumers learn about new products for the first time and make the decision to buy them
during the ________.
A) need recognition stage
B) adoption process
C) evaluation process
D) trial process
E) quality assessment

Answer: B

24) Which of the following is NOT one of the stages that customers go through in the process of
learning about and making decisions about a new product or service?
A) awareness
B) interest
C) evaluation

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D) culture
E) trial

Answer: D

25) Relative advantage, compatibility, complexity, divisibility, and communicability are all
examples of ________.
A) alternative evaluations
B) dissonance-reducing buying behaviors
C) product characteristics that influence rate of adoption
D) individual differences in innovation
E) postpurchase behaviors

Answer: C

Chapter 7 Customer-Driven Marketing Strategy: Creating Value for Target Customers

1) When a company identifies the parts of the market it can serve best and most profitably, it is
practicing ________.
A) concentrated marketing
B) mass marketing
C) market targeting
D) segmenting
E) differentiation

Answer: C

2) What are the four steps, in order, to designing a customer-driven marketing strategy?
A) market segmentation, differentiation, positioning, and targeting
B) positioning, market segmentation, mass marketing, and targeting
C) market segmentation, targeting, differentiation, and positioning
D) market alignment, market segmentation, differentiation, and market positioning
E) market recognition, market preference, market targeting, and market insistence

Answer: C

3) Through market segmentation, companies divide large, heterogeneous markets into smaller
segments that can be reached more ________ with products and services that match their unique
needs.
A) efficiently
B) effectively
C) intensely
D) indirectly
E) both A and B

Answer: E

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4) Your firm has decided to localize its products and services to meet local market demands. A
good approach to use would be ________ segmentation.

A) geographic
B) benefit
C) end-use
D) customer
E) image

Answer: A

5) Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation,
income, and family life cycle. What type of segmentation does Pendergraff use?
A) geographic
B) behavioral
C) lifestyle
D) demographic
E) psychographic

Answer: D

6) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a
product is ________ segmentation.
A) behavioral
B) psychographic
C) age and life cycle
D) demographic
E) geographic

Answer: A

7) Many marketers believe that which of the following variables are the best starting point for
building marketing segments?
A) behavioral
B) family size
C) gender
D) age
E) beneficial

Answer: A

8) International Drilling Company segments its foreign markets by their overall level of
economic development. This firm segments on what basis?
A) political factors
B) legal factors

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C) geographic factors
D) economic factors
E) cultural factors

Answer: D

9) When the size, purchasing power, and profiles of a market segment can be determined, it
possesses the requirement of being ________.
A) measurable
B) accessible
C) substantial
D) actionable
E) observable

Answer: A
10) When a business market segment is large or profitable enough to serve, it is termed
________.
A) measurable
B) accessible
C) substantial
D) actionable
E) differentiable

Answer: C

11) When an effective program can be designed for attracting and serving a chosen segment, the
segment is best described as ________.
A) accessible
B) measurable
C) reachable
D) actionable
E) differentiable

Answer: D

12) You have discovered that the segments you are targeting are conceptually distinguishable
and respond differently to different marketing mix elements and programs. These segments are
________.
A) accessible
B) measurable
C) reachable
D) differentiable
E) observable

Answer: D

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13) In general, a company should enter only segments in which it can ________ and ________.
A) offer lower prices; ship faster
B) offer superior value; gain advantages over competitors
C) offer superior value; ship faster
D) gain advantages over competitors; differentiate its products
E) identify behaviors; understanding spending power

Answer: B

14) Mass marketers, such as Target and Venture Stores, often ignore market segment differences
and target the whole market with one offer. What is their approach to segmenting?
A) undifferentiated marketing
B) differentiated marketing
C) target marketing
D) concentrated marketing
E) micromarketing

Answer: A

15) When New Port Shipping uses segmented marketing, it targets several segments and designs
separate offers for each one. This approach is called ________ marketing.
A) undifferentiated
B) differentiated
C) target
D) individual
E) niche

Answer: B

16) Developing a strong position within several segments creates more total sales than ________
marketing across all segments.
A) undifferentiated
B) differentiated
C) niche
D) target
E) individual

Answer: A

17) When a company interacts one-on-one with large numbers of customers to create customer-
unique value by designing products and services tailor-made to individual needs, it is following
________.
A) one-to-one marketing
B) mass marketing
C) mass customization
D) differentiated marketing

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E) localization

Answer: C

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