Chapter 1—An Overview of Marketing
146 questions (19 true/false, 108 multiple choice, 19 essay)
TRUE/FALSE
1. Marketing is defined as producing, promoting, and selling products.
ANS: F PTS: 1 REF: 4 OBJ: 01-1 TYPE: Def
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.
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: 4 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: 4 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: 5 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 PTS: 1 REF: 5 OBJ: 01-2 TYPE: App
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.
TOP: AASCB 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: 6 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: 7 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: 7 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 PTS: 1 REF: 8 OBJ: 01-3 TYPE: Def
Customer value is the relationship between benefits and the sacrifice necessary to obtain
those benefits.
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: 8 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: 9 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 PTS: 1 REF: 9 OBJ: 01-3 TYPE: Comp
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.
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: 10 OBJ: 01-3 TYPE: App
TOP: AACSB Reflective Thinking| TB&E Model Customer
146 questions (19 true/false, 108 multiple choice, 19 essay)
TRUE/FALSE
1. Marketing is defined as producing, promoting, and selling products.
ANS: F PTS: 1 REF: 4 OBJ: 01-1 TYPE: Def
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.
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: 4 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: 4 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: 5 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 PTS: 1 REF: 5 OBJ: 01-2 TYPE: App
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.
TOP: AASCB 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: 6 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: 7 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: 7 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 PTS: 1 REF: 8 OBJ: 01-3 TYPE: Def
Customer value is the relationship between benefits and the sacrifice necessary to obtain
those benefits.
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: 8 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: 9 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 PTS: 1 REF: 9 OBJ: 01-3 TYPE: Comp
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.
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: 10 OBJ: 01-3 TYPE: App
TOP: AACSB Reflective Thinking| TB&E Model Customer
