Marketing 101 Test Bank
Principles of Marketing Test Bank
Chapter 01 Testbank Key
1.
Marketers might wish to sell their products to everyone, but it
... [Show More] is not practical to do so.
TRUE
A good marketer will seek out potential customers who have an interest in the product and the ability to buy it.
AACSB: Analytic
Bloom’s: Remember
Difficulty: Easy
Learning Objective: 1.1 Define the role of marketing in organisations
2.
The four Ps include product, promotion, planning and place.
FALSE
The four Ps are product, price, promotion and place.
AACSB: Analytic
Bloom’s: Remember
Difficulty: Easy
Learning Objective: 1.1 Define the role of marketing in organisations
3.
The group of firms that makes and delivers a given set of goods and/or services is called a supply chain.
TRUE
Supply chain (or marketing channel) partners include all firms involved in manufacturing and delivering goods
and services, from raw material suppliers to retailers and shipping companies.
AACSB: Analytic
Bloom’s: Remember
Difficulty: Easy
Learning Objective: 1.3 Understand why marketing is important, both within and outside the firm
4.
Value is what you get for what you give.
TRUE
Value is the relationship between the benefits received and the costs.
AACSB: Analytic
Bloom’s: Remember
Difficulty: Easy
Learning Objective: 1.1 Define the role of marketing in organisations
5.
In value co-creation, the customer participates in the creation of a good or service, which provides additional value to the customer.
TRUE
In value co-creation, the firm and the customer work together to create the good or service. This process adds
value because the good or service can be tailored to the customer’s needs.
AACSB: Analytic
Bloom’s: Understand
Difficulty: Medium
Learning Objective: 1.1 Define the role of marketing in organisations
6.
Over the past decade or so, marketers have begun to realise that it is best to structure a firm's customer orientation in terms of
transactions rather than relationships.
FALSE
A transactional orientation focuses only on the current exchange, whereas a relational orientation attempts to
build a long-term relationship with the customer, resulting in a stream of transactions and (usually) higher profits.
AACSB: Analytic
Bloom’s: Understand
Difficulty: Medium
Learning Objective: 1.2 Explain the concept of value in marketing
7.
When a good or service is promoted, the purpose of the promotion is to inform, persuade or remind customers.
TRUE
Promotions are generally designed to inform, persuade, or remind potential buyers about a good or service.
AACSB: Analytic
Bloom’s: Remember
Difficulty: Easy
Learning Objective: 1.1 Define the role of marketing in organisations
8.
When a car manufacturer sells trucks, cars, and car parts to the government or military, this is an example of B2C marketing.
FALSE
This is an example of B2B (business to business) marketing. B2C marketing would involve selling cars or trucks
to individual consumers.
AACSB: Analytic
Bloom’s: Understand
Difficulty: Medium
Learning Objective: 1.1 Define the role of marketing in organisations
9.
The power adapters Dell sells with its computers are built by small companies who specialise in power-related accessories. Dell and
the power adapter manufacturers are engaging in B2B marketing.
TRUE
Dell, a business, is purchasing supplies from another business, so this is an example of business-to-business
(B2B) marketing.
AACSB: Analytic
Bloom’s: Understand
Difficulty: Medium
Learning Objective: 1.1 Define the role of marketing in organisations
10.
Garage sales and online classified ads are examples of C2C marketing.
TRUE
These are C2C marketing scenarios, where consumers market to each other.
AACSB: Analytic
Bloom’s: Understand
Difficulty: Medium
Learning Objective: 1.1 Define the role of marketing in organisations
11.
Margo likes a brand of coffee that is only sold at Starbucks, so she plans her route to work to drive by Starbucks every morning.
Margo is being influenced by the 'place' element of the marketing mix.
TRUE
Place represents all the activities necessary to get the product to the right customer when that customer wants it.
For instance, marketing channel considerations have pushed a growing number of businesses to adopt multiple
convenient locations.
AACSB: Analytic
Bloom’s: Understand
Difficulty: Medium
Learning Objective: 1.1 Define the role of marketing in organisations
12.
When a t-shirt manufacturer states, 'We only sell it in black because that way we can buy plenty of black fabric and run our plant
efficiently', their statement reflects the views that were popular in which era of the evolution of marketing?
A. Production-oriented
B. Sales-oriented
C. Market-oriented
D. Value-based marketing
This question refers to the Production-oriented era, which is when companies manufactured items without taking
individuals' needs or wants into consideration.
AACSB: Analytic
Bloom’s: Remember
Difficulty: Easy
Learning Objective: 1.1 Define the role of marketing in organisations
13.
Xavier is analysing potential market segments. He should carefully seek potential customers who have both an interest in his
products and:
A. a thorough knowledge of his brand messages
B. the ability to buy them
C. knowledge of competing products
D. are removed from traditional marketing alternatives
If Xavier selects customers with an interest in the kinds of products he offers and the ability to purchase, he can
communicate the value his offerings provide and offer competitive comparisons as part of his marketing mix.
AACSB: Analytic
Bloom’s: Understand
Difficulty: Medium
Learning Objective: 1.1 Define the role of marketing in organisations
14.
Whenever Valerie has a new massage therapy customer, she invites the person to be on her email distribution list. In the process, in
addition to exchanging her massage therapy service for payment, Valerie is gathering:
A. information
B. promotional capital
C. value co-creation
D. feedback
In this case, Valerie's customer receives a massage and she receives both payment and information (in the form
of the customer's email address) as part of the exchange process.
AACSB: Communication
Bloom’s: Apply
Difficulty: Hard
Learning Objective: 1.1 Define the role of marketing in organisations
15.
Henriette offers financial counselling and management on a fee-only basis. She has found that different customers are willing to pay
different rates for her services. This shows that her pricing decisions should depend primarily on:
A. choosing an average price that she will charge all her clients
B. changes in technology allowing consumers to manage their own affairs
C. how different customers perceive the value of her services
D. how much her competitors charge for similar services
Although the other factors might need to be considered in pricing, the primary consideration should be perceived
value—and the reason different customers are willing to pay different rates is because they perceive the value
differently.
AACSB: Analytic
Bloom’s: Analyse
Difficulty: Hard
Learning Objective: 1.1 Define the role of marketing in organisations
16.
Yesenia, the new university course scheduling manager, is struggling with adjustments to the autumn schedule. She is trying to
determine how to offer the classes students need at the times students need them. Yesenia is struggling with the marketing function
of:
A. communicating the value proposition
B. supply chain management
C. capturing value
D. value co-creation
Getting a product (in this case, a class) to customers when and where they want them describes the Place
component of the marketing mix, which involves managing the supply chain.
AACSB: Analytic
Bloom’s: Apply
Difficulty: Hard
Learning Objective: 1.1 Define the role of marketing in organisations
17.
__________ is communication by a marketer that informs, persuades or reminds potential customers about a product.
A. Pricing
B. Promotion
C. Placement
D. A relational orientation
This is the definition of promotion.
AACSB: Communication
Bloom’s: Remember
Difficulty: Easy
Learning Objective: 1.1 Define the role of marketing in organisations
18.
Auction sites like eBay have mainly increased opportunities for __________ marketing.
A. B2B
B. C2C
C. D2C
D. C2D
Consumers can buy and sell from each other on sites like eBay, increasing the amount of consumer-to-consumer
(C2C) marketing that takes place.
AACSB: Analytic
Bloom’s: Understand
Difficulty: Medium
Learning Objective: 1.1 Define the role of marketing in organisations
19.
Which of the following is NOT true about marketing ideas?
A. Opinions, philosophies, intellectual concepts and even thoughts can be effectively marketed.
B. The marketing of ideas does not involve true exchange of value.
C.
Ideas can be 'purchased' by convincing someone to change his or her behaviour.
D. Marketing can be directed toward primary and secondary targets to increase knowledge and
change behaviour.
The marketing of ideas does, in fact, involve exchange of value. One party benefits from exposure to a new idea,
while the other generally asks for a particular behaviour.
AACSB: Analytic
Bloom’s: Understand
Difficulty: Medium
Learning Objective: 1.1 Define the role of marketing in organisations
20.
The evolution of marketing progressed along the following continuum:
A. sales, marketing, value-based marketing, production
B. marketing, value-based marketing, production, sales
C. value-based marketing, production, sales, marketing
D. production, sales, marketing, value-based marketing
The production-oriented era was followed by the sales-oriented era, then the marketing-oriented era and finally
the value-based marketing era.
AACSB: Analytic
Bloom’s: Understand
Difficulty: Easy
Learning Objective: 1.1 Define the role of marketing in organisations
21.
The idea that a good product will sell itself is associated with the __________ era of marketing.
A. production-oriented
B. sales-oriented
C. market-oriented
D. value-based marketing
In the production-oriented era, the assumption was that if companies built good products, they would sell without
any particular effort.
AACSB: Analytic
Bloom’s: Understand
Difficulty: Medium
Learning Objective: 1.1 Define the role of marketing in organisations
22.
Melanie works for a small computer software company. Her boss is constantly improving their products but neglecting customers,
billing and promoting the company. Her boss is probably stuck in the __________ era of marketing.
A. production-oriented
B. sales-oriented
C. market-oriented
D. value-based marketing
The production-oriented era of marketing dealt primarily with manufacturing processes and the design of a good
product, but without concern for meeting specific customer needs.
AACSB: Analytic
Bloom’s: Apply
Difficulty: Hard
Learning Objective: 1.1 Define the role of marketing in organisations
23.
The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold.
A. production-oriented
B. sales-oriented
C. market-oriented
D. value-based marketing
In the sales-oriented era, firms believed that a hard-sell approach was the answer to building sales.
AACSB: Analytic
Bloom’s: Understand
Difficulty: Medium
Learning Objective: 1.1 Define the role of marketing in organisations
24.
Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options
available. He decides which products to offer and what prices to charge based on the way his customers think. Trey operates in the
__________ era.
A. production-oriented
B. sales-oriented
C. market-oriented
D. value-based marketing
Trey is thinking in terms of the value his customers perceive (benefits minus costs) and thus is thinking about
value-based marketing.
AACSB: Analytic
Bloom’s: Apply
Difficulty: Hard
Learning Objective: 1.1 Define the role of marketing in organisations
25.
Christie has just started with a travel agency. She has been offering clients and prospective clients a range of packaged tours. She
is concerned because the commissions she is earning on her sales are lower than she had hoped. Her colleague Peter, who has
been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas and
building customised tour packages for each one based on their suggestions. Peter's approach is based on:
A. transaction-oriented marketing
B. premium pricing
C. special incentives from tour operators
D. value co-creation
Peter is collaborating with his clients to build custom packages, which is an example of value co-creation.
AACSB: Analytic
Bloom’s: Analyse
Difficulty: Hard
Learning Objective: 1.1 Define the role of marketing in organisations
26.
As owner of a retail franchise food store, Mary Grey purchases supplies based on specials advertised nationally throughout the
franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance.
The franchise company failed to live up to the value-driven principle of:
A. sharing information across the organisation
B. balancing customers' benefits and costs
C. evaluating strategic competitive partnerships
D. building relationships with customers
Apparently the national headquarters forgot to inform franchisees of the special, suggesting a failure of
information sharing.
AACSB: Analytic
Bloom’s: Apply
Difficulty: Hard
Learning Objective: 1.2 Explain the concept of value in marketing
27.
If you are involved in a buying or selling situation in which you do not expect to do business with the other party again, you are
engaged in a:
A. transaction
B. negotiation
C. relationship
D. C2C channel
A one-time purchase between buyer and seller is a transaction, as opposed to a relationship in which a continual
stream of transactions is expected.
AACSB: Analytic
Bloom’s: Understand
Difficulty: Hard
Learning Objective: 1.2 Explain the concept of value in marketing
28.
A relational orientation is based on the philosophy that buyers and sellers develop:
A.
a complete understanding of each other's needs
B. a long-term relationship
C. a price-value comparison matrix
D. supply chain synergy
A relational orientation expects a relationship to develop over the long term.
AACSB: Analytic
Bloom’s: Remember
Difficulty: Easy
Learning Objective: 1.2 Explain the concept of value in marketing
29.
Franco uses a database software system to remind him when his customers should be ready to reorder his industrial cleaning
products. With this reminder system, Franco contacts his customers when they are most likely to be 'in the buying mode'. Franco's
system is part of:
A. C2C marketing
B. customer relationship management
C. a transactional marketing orientation
D. supply chain management
Franco's system is one element of a customer relationship management system, in that it tracks customers and
seeks to meet their specific needs in order to build loyalty.
AACSB: Analytic
Bloom’s: Apply
Difficulty: Hard
Learning Objective: 1.2 Explain the concept of value in marketing
30.
Georgia, the outside sales rep for a major building supply company, reads a report stating that building permits are down
dramatically in her sales territory. She had noticed that things were slowing down, but now she has data confirming her impression.
Based on this information, one important function Georgia should provide is:
A. pushing her customers to buy products whether they need them or not
B. advising the production and purchasing departments to produce or order smaller quantities of
products
C. assisting customers in product recall confirmations
D. estimating profit per sale to determine whether or not the firm can survive the slowdown
Georgia should share what she has learned with the production and purchasing departments, so that they can
plan accordingly. She should not push her customers to buy things they don’t need—this will damage her firm’s
reputation and will come back to haunt her when the downturn ends. Estimating profit isn’t Georgia’s
responsibility, but someone in the firm should look at the impact of the slowdown, if enough sales territories are [Show Less]