Business Foundations 12th Edition By O. C. Ferrell – Test Bank

Chapter 11 Customer-Driven Marketing

1) Creating an innovative product that meets many users’ needs is sufficient in today’s global marketplace.

Answer: FALSE
Explanation: Just creating an innovative product that meets many users’ needs isn’t sufficient in today’s volatile global marketplace. Products must be conveniently available, competitively priced, and uniquely promoted.
Difficulty: 1 Easy
Topic: The Importance of Marketing
Learning Objective: 11-02 Describe the exchange process.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

2) A marketer must understand the needs of the buyer in order to determine what products to make available.

Answer: TRUE
Explanation: Everyone who shops for products (consumers, stores, businesses, governments) decides whether and what to buy. A marketer must understand buyers’ needs and desires to determine what products to make available.
Difficulty: 1 Easy
Topic: Functions of Marketing
Learning Objective: 11-03 Specify the functions of marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

3) Trying to determine customers’ true needs is difficult because no one fully understands what motivates people to buy things.

Answer: TRUE
Explanation: According to the marketing concept, a business must find out what consumers desire and then develop the good, service, or idea that fulfills their needs or wants. However, trying to determine customers’ true needs is increasingly difficult because no one fully understands what motivates people to buy things.
Difficulty: 1 Easy
Topic: The Marketing Concept
Learning Objective: 11-04 Explain the marketing concept and its implications for developing marketing strategies.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) Products are either marketed to the B2B market or the B2C market, but never to both.

Answer: FALSE
Explanation: Sometimes products are used in both markets. For example, cleaning supplies are B2C products when sold to households, but B2B products when sold for janitorial purposes.
Difficulty: 2 Medium
Topic: Market Segmentation
Learning Objective: 11-05 Examine the development of a marketing strategy, including market segmentation and marketing mix.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

5) Buying behavior includes the behavior of both consumers purchasing products for personal or household use as well as organizations buying products for business use.

Answer: TRUE
Explanation: Buying behavior refers to the decision processes and actions of people who purchase and use products. It includes the behavior of both consumers purchasing products for personal or household use as well as organizations buying products for business use.
Difficulty: 1 Easy
Topic: Buying Behavior
Learning Objective: 11-06 Describe how marketers conduct marketing research and study buying behavior.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

6) It is necessary for nonprofits and government institutions to market themselves to spread awareness and achieve desired outcomes.

Answer: TRUE
Explanation: It is not just for-profit businesses that engage in marketing activities. Nonprofits, government institutions, and even people must market themselves to spread awareness and achieve desired outcomes.
Difficulty: 1 Easy
Topic: The Importance of Marketing
Learning Objective: 11-07 Summarize the environmental forces that influence marketing decisions.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

7) A group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas is referred to as
A) auditing.
B) marketing.
C) recruiting.
D) segmenting.
E) positioning.

Answer: B
Explanation: A vital part of any business undertaking, marketing is a group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas. These activities create value by allowing individuals and organizations to obtain what they need and want.
Difficulty: 1 Easy
Topic: The Importance of Marketing
Learning Objective: 11-01 Define marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

8) The best way marketing activities create value is by
A) focusing exclusively on selling and advertising.
B) using unsystematic approaches to satisfying consumers.
C) manipulating consumers to get them to buy products they do not want.
D) allowing individuals and organizations to obtain what they need and want.
E) working independently of other functional areas of business—such as operations.

Answer: D
Explanation: Marketing activities create value by allowing individuals and organizations to obtain what they need and want. Marketing is not manipulating consumers to get them to buy products they do not want. It is not just selling and advertising; it is a systematic approach to satisfying consumers.
Difficulty: 2 Medium
Topic: The Importance of Marketing
Learning Objective: 11-01 Define marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

9) For the products launched by companies to succeed, it is important that
A) marketing is aggressive and separate from other functional areas.
B) marketing endeavors are directed solely at manipulating consumers.
C) all the functional areas of the business are coordinated with marketing decisions.
D) the marketing environment changes constantly.
E) one environmental force is not interconnected with another environmental force.

Answer: C
Explanation: Marketing is an important part of a firm’s overall strategy. Other functional areas of the business—such as operations, finance, and all areas of management—must be coordinated with marketing decisions.
Difficulty: 2 Medium
Topic: The Importance of Marketing
Learning Objective: 11-01 Define marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

10) One of the important functions of ________ is to provide revenue to sustain a firm.
A) accounting
B) recruitment
C) customer service
D) marketing
E) human resource management

Answer: D
Explanation: Marketing has the important function of providing revenue to sustain a firm. It is an important part of a firm’s overall strategy. Other functional areas of the business—such as operations, finance, and all areas of management—must be coordinated with marketing decisions.
Difficulty: 1 Easy
Topic: The Importance of Marketing
Learning Objective: 11-01 Define marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation