Chapter 1�An Overview of Marketing
TRUE/FALSE
1.
Marketing is defined as producing, promoting, and selling products.
ANS: F
Marketing means more than just producing, promoting, and selling products. It is
a philosophy that
stresses customer relationships as well as benefiting the organization and its
stakeholders.
PTS: 1 REF: 6 OBJ: 01-1 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Strategy
2.
According to the American Marketing Association, marketing is an organizational
function and a set of
processes for creating, communicating, and delivering value to customers and for
managing customer
relationships in ways that benefit the organization and its stakeholders.
ANS: T PTS: 1 REF: 6 OBJ: 01-1 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Strategy
3.
An exchange cannot take place unless each party in the exchange has something
that the other party
values.
ANS: T PTS: 1 REF: 6 OBJ: 01-1 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Strategy
4.
Sara Lee Industries spent considerable money and time developing a crustless
bread. Prior to the
introduction, the company had not conducted market research among its customers,
but it was
confident that its science and technology department had produced a successful
new product. Based on
this example, Sara Lee is a good example of a production-oriented company.
ANS: T PTS: 1 REF: 7 OBJ: 01-2 TYPE: App
TOP: AACSB Analytic | TB&E Model Research
5.
World Championship Wrestling (WCW), a one-time competitor of the World Wrestling
Federation
(now known as World Wrestling Entertainment), failed primarily because it set up
its matches
according to what its wrestlers wanted to do rather than what its fans wanted to
see. Obviously, WCW
had a market orientation.
ANS: F
A production orientation would be a more appropriate description for a firm that
does not research
consumer needs and wants but rather focuses on the internal capabilities of the
firm.
PTS: 1 REF: 7 OBJ: 01-2 TYPE: App
TOP: AACSB Analytic | TB&E Model Strategy
6.
The marketing concept states that the social and economic justification for an
organization's existence
,is the satisfaction of customers� wants and needs while meeting organizational
objectives.
ANS: T PTS: 1 REF: 8 OBJ: 01-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer
,7.
The societal marketing concept considers society's long-term best interests
along with the satisfaction
of customers' wants and needs.
ANS: T PTS: 1 REF: 9 OBJ: 01-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer
8.
Both production and sales orientations are focused inward on the organization's
needs.
ANS: T PTS: 1 REF: 9 OBJ: 01-3 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Strategy
9.
Customer value is the relationship between company profits and company costs.
ANS: F
Customer value is the relationship between benefits and the sacrifice necessary
to obtain those
benefits.
PTS: 1 REF: 10 OBJ: 01-3 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Pricing
10.
Firms try to achieve customer satisfaction and value by ensuring customer
expectations are met or
exceeded.
ANS: T PTS: 1 REF: 10 OBJ: 01-3 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Customer
11.
3D Systems is a company that uses computers to generate new product prototypes.
It has generated
loyal business clients by providing the best customer support in the industry.
The company also
provides direct sales consultations that gives its salespeople intimate
knowledge about what exactly its
customers want. This partnership between 3D Systems and its customers entails
relationship
marketing.
ANS: T PTS: 1 REF: 11 OBJ: 01-3 TYPE: App
TOP: AACSB Analytic | TB&E Model Product
12.
Only a firm's salespeople need to be customer-oriented.
ANS: F
All employees need to be customer-oriented because in the customer's eyes, the
employee (regardless
of the position held in the organization) is the firm and may be the only firm
representative the
customer ever sees.
PTS: 1 REF: 11 OBJ: 01-3 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Customer
13.
Retailers who give their sales clerks the authority to handle customer
complaints without having to get
approval from a supervisor are using empowerment.
, ANS: T PTS: 1 REF: 12 OBJ: 01-3 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Customer
TRUE/FALSE
1.
Marketing is defined as producing, promoting, and selling products.
ANS: F
Marketing means more than just producing, promoting, and selling products. It is
a philosophy that
stresses customer relationships as well as benefiting the organization and its
stakeholders.
PTS: 1 REF: 6 OBJ: 01-1 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Strategy
2.
According to the American Marketing Association, marketing is an organizational
function and a set of
processes for creating, communicating, and delivering value to customers and for
managing customer
relationships in ways that benefit the organization and its stakeholders.
ANS: T PTS: 1 REF: 6 OBJ: 01-1 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Strategy
3.
An exchange cannot take place unless each party in the exchange has something
that the other party
values.
ANS: T PTS: 1 REF: 6 OBJ: 01-1 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Strategy
4.
Sara Lee Industries spent considerable money and time developing a crustless
bread. Prior to the
introduction, the company had not conducted market research among its customers,
but it was
confident that its science and technology department had produced a successful
new product. Based on
this example, Sara Lee is a good example of a production-oriented company.
ANS: T PTS: 1 REF: 7 OBJ: 01-2 TYPE: App
TOP: AACSB Analytic | TB&E Model Research
5.
World Championship Wrestling (WCW), a one-time competitor of the World Wrestling
Federation
(now known as World Wrestling Entertainment), failed primarily because it set up
its matches
according to what its wrestlers wanted to do rather than what its fans wanted to
see. Obviously, WCW
had a market orientation.
ANS: F
A production orientation would be a more appropriate description for a firm that
does not research
consumer needs and wants but rather focuses on the internal capabilities of the
firm.
PTS: 1 REF: 7 OBJ: 01-2 TYPE: App
TOP: AACSB Analytic | TB&E Model Strategy
6.
The marketing concept states that the social and economic justification for an
organization's existence
,is the satisfaction of customers� wants and needs while meeting organizational
objectives.
ANS: T PTS: 1 REF: 8 OBJ: 01-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer
,7.
The societal marketing concept considers society's long-term best interests
along with the satisfaction
of customers' wants and needs.
ANS: T PTS: 1 REF: 9 OBJ: 01-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer
8.
Both production and sales orientations are focused inward on the organization's
needs.
ANS: T PTS: 1 REF: 9 OBJ: 01-3 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Strategy
9.
Customer value is the relationship between company profits and company costs.
ANS: F
Customer value is the relationship between benefits and the sacrifice necessary
to obtain those
benefits.
PTS: 1 REF: 10 OBJ: 01-3 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Pricing
10.
Firms try to achieve customer satisfaction and value by ensuring customer
expectations are met or
exceeded.
ANS: T PTS: 1 REF: 10 OBJ: 01-3 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Customer
11.
3D Systems is a company that uses computers to generate new product prototypes.
It has generated
loyal business clients by providing the best customer support in the industry.
The company also
provides direct sales consultations that gives its salespeople intimate
knowledge about what exactly its
customers want. This partnership between 3D Systems and its customers entails
relationship
marketing.
ANS: T PTS: 1 REF: 11 OBJ: 01-3 TYPE: App
TOP: AACSB Analytic | TB&E Model Product
12.
Only a firm's salespeople need to be customer-oriented.
ANS: F
All employees need to be customer-oriented because in the customer's eyes, the
employee (regardless
of the position held in the organization) is the firm and may be the only firm
representative the
customer ever sees.
PTS: 1 REF: 11 OBJ: 01-3 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Customer
13.
Retailers who give their sales clerks the authority to handle customer
complaints without having to get
approval from a supervisor are using empowerment.
, ANS: T PTS: 1 REF: 12 OBJ: 01-3 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Customer
